Record heat strains Iraqi economy
A record-breaking heatwave is imposing growing economic costs on Iraq, disrupting power supplies, reducing crop yields, and cutting labor productivity, an Iraqi expert reported on Sunday.
Speaking to Shafaq News, Nawar al-Saadi, professor of international economics, explained that the country is already facing tangible financial losses, weighing heavily on public finances and slowing growth.
'The cost of extreme heat is no longer theoretical — it's draining the federal budget, reducing productivity, and limiting the government's ability to respond to development needs,' al-Saadi noted.
Temperatures in some Iraqi cities topped 115 degrees Fahrenheit (46 degrees Celsius) over the past week, driving electricity demand to record highs. With Iraq's power grid operating at roughly 60 percent capacity and struggling with poor distribution, authorities have increasingly relied on importing electricity and fuel — usually paid for in dollars — adding to fiscal pressure amid declining oil revenues.
Significant setbacks have also hit the agricultural sector. Reduced water flows from Turkiye and Iran, combined with rapid evaporation, have lowered crop yields by an estimated 15 percent in some regions. This shortfall has increased reliance on food imports, raising demand for foreign currency and further straining the Iraqi dinar.
'The climate crisis is no longer just an environmental threat; it's becoming a financial crisis, driving up food imports and putting the dinar under growing pressure,' he added.
At the same time, the health system is under strain as it manages a surge in heat-related illnesses such as sunstroke, dehydration, and waterborne infections. Medical facilities are also facing rising costs amid shortages in equipment and staff.
Weather monitoring platform Play Weather reported that eleven Iraqi cities ranked among the 15 hottest locations globally over the past 24 hours.
In response, provinces including Basra, Dhi Qar, Maysan, Wasit, Al-Diwaniyah, Karbala, and Babil suspended or shortened official working hours. Similar measures were implemented in Saladin, Diyala, and Al-Muthanna.
Health officials have also urged residents to avoid direct sunlight during peak hours, maintain hydration, and follow medical advice to prevent heat-related complications.
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